Can I place a lien on property after contract termination?

Full question:

I own a small business in Illinois. Last year I was under contract with a company from Switzerland to store & maintain their products for warranty support of their customers here in North America. In October, they exercised their option to terminate the contract. At that time I informed them that the owed me approximately $5,000.00 (These charges were determined in the original contractual agreement that they authored)for storage, maintenance, and service fees. At this time (January '10)they have failed to satisfy their commitment. I have approximately $80,000.00 of their product & equipment that I continue to store for them. The original contract did provide a definition of storage fees and all rates.I approached their attorney in December (12/14/09)(Who is located in the USA) with a detailed account of the funds requested. I have received no response since, with subsequent inquires to their attorney going unanswered.It is my intention to treat the property the same as would be abandoned property as if left in a strange facility.1) Can I place lien on this property at this time?At their request, the original contract was terminated in October.

• Category: Judgment Liens
• Date: 04/07/2025
• State: Illinois

Answer:

When a contract is breached, the injured party can sue for breach of contract and seek money damages in civil court. If the defendant is from out of state, they may be served under the state's long-arm statute, provided the requirements for jurisdiction and due process are met. This means the defendant must have sufficient contacts with the state to reasonably foresee being sued there.

To create a valid lien, the party claiming the lien must have possession of the property and a right to it, either through ownership or an agreement. The lien should arise from an express or implied agreement and not contradict the contract's terms. In some cases, the lien holder can foreclose on the property if the debt remains unpaid. Generally, liens can be removed by paying the owed amount.

There are various types of liens that can affect the title of the property. A judgment lien is established when a court grants a creditor an interest in the debtor's property based on a court judgment. This can occur in cases of unpaid debts. If a judgment is obtained, the creditor can place a lien on the debtor's property to secure payment. The next step after placing a lien is to conduct a sale of the property to satisfy the debt.